Natural gas prices in India are likely to be cut by a steep 25 per cent beginning April, in line with the slump in global rates, sources said.

The price of most of the natural gas produced by state-owned ONGC and Oil India Ltd, which account for the bulk of India's existing gas output, is likely to be cut to around USD 2.5 per million British thermal unit for the six-month period beginning April 1, from USD 3.23 as of now.

This will be the second reduction in six months and will reduce rates to the lowest in two-and-half-years.

Sources said the price of gas produced from difficult fields too is likely to be cut to USD 5.50 from USD 8.43 per mmBtu now.

Prices of natural gas, which is used to produce fertiliser and generate electricity and is also converted into CNG for use in automobiles as fuel and cooking gas for households, are set every six months - on April 1 and October 1 each year.